Field of the Invention
The present invention relates to controlling fraud when applications for instant credit are granted.
Background Art
Credit card applicants often desire an instant decision and instant ability to charge on the credit card (e.g., instant spend) when they submit an application for credit. In one example, applicants are able to immediately utilize the new credit when an instant account number (“IAN”) is issued. However, for the credit grantor, authenticating the applicant can be difficult.
A variety of controls have previously been employed by credit grantors to authenticate the IAN applicant. For example, when the application is submitted in person, the grantor can physically check the applicant's identification. Although, such a control does not work over the Internet or telephone. In another example, the grantor can limit the line of credit associated with the IAN. However, various credit partners may require that certain minimum credit lines be approved, which can be inconsistent with this type of fraud control. The grantor may also attempt to authenticate the applicant by asking “out-of-wallet questions” (e.g., “what is your mother's maiden name?”), but the applicant may have privacy concerns and not freely want to give out this information. Also, such out-of-wallet information may be easily available to the fraud perpetrator. Therefore, what is needed is a better way of controlling fraud when issuing IANs.